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View Bear Cases →Kalyan Jewellers India Ltd — Q2 FY26
Kalyan Jewellers delivered a strong Q2 FY26 with consolidated revenue of ₹7,856 crore (+30% YoY) and PAT of ₹261 crore (+100% YoY), driven by robust same-store sales growth of 30%+ during the festive period and continued momentum post-Diwali.
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Kalyan Jewellers delivered a strong Q2 FY26 with consolidated revenue of ₹7,856 crore (+30% YoY) and PAT of ₹261 crore (+100% YoY), driven by robust same-store sales growth of 30%+ during the festive period and continued momentum post-Diwali. India revenue grew 31% to ₹6,843 crore, while Middle East grew 8% to ₹866 crore. The company reduced non-GML debt by ₹130 crore to ₹550 crore, on track for the annual target of ₹300 crore reduction. Management guided for 84 new Kalyan India stores and 80 Candere stores this year, with Candere expected to reach PAT neutrality for the full year. The pilot program contributed 0.2-0.3% to gross margins and will be maintained at current levels. A new regional brand launch is planned for Q4 with five stores over 12 months. Key risk: franchisee mix expansion may continue to pressure EBITDA margins.
कल्याण ज्वैलर्स ने दूसरी तिमाही में 7,856 करोड़ रुपये की कमाई की, जो पिछले साल से 30% ज्यादा है। मुनाफा 261 करोड़ रुपये रहा, जो पिछले साल से दोगुना है। यह त्योहारी सीजन में दुकानों पर 30% से ज्यादा बिक्री बढ़ने और दिवाली के बाद भी चल रही मांग की वजह से हुआ। भारत में कमाई 31% बढ़कर 6,843 करोड़ रुपये और मिडिल ईस्ट में 8% बढ़कर 866 करोड़ रुपये रही। कंपनी ने कर्ज 130 करोड़ रुपये घटाकर 550 करोड़ रुपये किया, और सालाना 300 करोड़ रुपये कम करने के लक्ष्य पर है। इस साल 84 नए कल्याण स्टोर और 80 कैंडेरे स्टोर खोलने की योजना है। कैंडेरे इस साल घाटा नहीं करेगा। एक नया ब्रांड चौथी तिमाही में लॉन्च होगा। जोखिम: फ्रैंचाइज़ी स्टोर बढ़ने से मुनाफा कम हो सकता है।
Bear Cases5 alive · 0 deadPromises0 met · 1 missedRisks4 trackedTranscriptfull text
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EBITDA margin pressure from franchisee mix
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Read Transcript →Quarter Snapshot
Same-store sales growth (30 days to Diwali)
30%+
+30%+ YoY
Strong festive demand drove SSG above 30% on a like-for-like basis, continuing into the current quarter.
New buyer share
30%+
Stable YoY
New buyers contributed over 30% of sales, indicating healthy customer acquisition.
Non-GML debt
₹550 crore
-₹130 crore QoQ
Debt reduced by ₹130 crore in Q2; on track to reach ₹400 crore by March 2026.
Candere revenue
₹93 crore
+127% YoY
Candere revenue more than doubled; management expects full-year PAT neutrality.
What Changed vs Last Quarter
NEW
84 new Kalyan India stores in FY26
Management plans to open 84 Kalyan-branded stores in India this fiscal year, with 40 already opened as of the call date.
NEW
Candere full-year PAT neutral in FY26
Candere is expected to achieve PAT neutrality for the full fiscal year, with revenue target of around ₹500 crore.
NEW
Non-GML debt to ₹400 crore by March 2026
The company targets reducing non-GML debt to approximately ₹400 crore by the end of FY26, with debt-free status next year.
UPDATED
Regional brand launch in Q4 with 5 stores
A new regional/local jewelry brand will launch in Q4 FY26, with five stores planned over the next 12 months and investment of ₹300-350 crore.
DROPPED
Candere to be PAT-positive by end of FY26
Candere is expected to end the current financial year with positive PAT, driven by strong store-level traction and brand campaign.
DROPPED
80 new Candere showrooms in FY26
Management plans to add 80 Candere showrooms in India during the current financial year.
DROPPED
India PBT margin to be above 5%
Management guided that India PBT margin should be on the upper side of 5% for the current quarter and year.
NEW RISK
EBITDA margin pressure from franchisee mix
As the share of franchisee (FOCO) stores increases, overall EBITDA margins may continue to decline due to lower margins in that channel.
NEW RISK
High employee attrition in My Kalyan division
Overall employee attrition rose to 52%, driven by My Kalyan's field marketing staff; management indicated this is an industry norm and unlikely to improve.
NEW RISK
Candere store opening delays
Candere store openings are behind schedule (30 opened vs 80 target), due to location upgrades; execution risk remains for meeting the full-year target.
NEW RISK
Middle East revenue growth moderation
Middle East revenue grew only 8% YoY with 7% SSG, impacted by timing of festivities; sustained slowdown could affect overall growth.
RISK GONE
Lean-credit rollout requires large capital
Expanding the lean-credit pilot to all Kalyan Jewellers stores may require INR 1,500-2,000 crore, with no clear funding plan yet.
RISK GONE
Gold price volatility could impact demand
High and volatile gold prices may cause consumers to pause purchases, as seen in late July and early August.
RISK GONE
Regional brand execution risk
The new regional brand format is untested and may face challenges in brand building and franchisee adoption.
RISK GONE
Candere losses may persist longer than guided
Candere posted a loss of INR 10 crore in Q1 vs INR 2 crore last year; profitability by year-end is not guaranteed.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25
Management plans to add 80 Candere showrooms in India during the current financial year.
Mentioned in Q1 FY26, Q3 FY25, Q4 FY25
High and volatile gold prices may cause consumers to pause purchases, as seen in late July and early August.
Mentioned in Q2 FY25, Q3 FY25
Plan to further reduce debt by approximately ₹150 crore during Q4 FY25.
Mentioned in Q1 FY25, Q1 FY26
Management guided that India PBT margin should be on the upper side of 5% for the current quarter and year.
Mentioned in Q1 FY25, Q2 FY25
Local competitors are becoming more active with increased branding and festive promotions, which could impact market share and pricing.
Fast read
Guidance and risk preview
Management plans to open 84 Kalyan-branded stores in India this fiscal year, with 40 already opened as of the call date.
As the share of franchisee (FOCO) stores increases, overall EBITDA margins may continue to decline due to lower margins in that channel.
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